Does Sparekassen Sjælland-Fyn A/S's (CPH:SPKSJF) CEO Salary Compare Well With Others?
In 2010 Lars Petersson was appointed CEO of Sparekassen Sjælland-Fyn A/S (CPH:SPKSJF). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Sparekassen Sjælland-Fyn
How Does Lars Petersson's Compensation Compare With Similar Sized Companies?
Our data indicates that Sparekassen Sjælland-Fyn A/S is worth ø1.5b, and total annual CEO compensation was reported as ø5.1m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ø4.3m. When we examined a selection of companies with market caps ranging from ø672m to ø2.7b, we found the median CEO total compensation was ø5.0m.
So Lars Petersson receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Sparekassen Sjælland-Fyn has changed from year to year.
Is Sparekassen Sjælland-Fyn A/S Growing?
Sparekassen Sjælland-Fyn A/S has reduced its earnings per share by an average of 2.2% a year, over the last three years (measured with a line of best fit). Its revenue is up 1.2% over last year.
In the last three years the company has failed to grow earnings per share. The fairly low revenue growth fails to impress given that the earnings per share is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Sparekassen Sjælland-Fyn A/S Been A Good Investment?
Since shareholders would have lost about 12% over three years, some Sparekassen Sjælland-Fyn A/S shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Lars Petersson is paid around the same as most CEOs of similar size companies.
After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Few would argue that it's wise for the company to pay any more, before returns improve. So you may want to check if insiders are buying Sparekassen Sjælland-Fyn shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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